SP Newsletter No.228
Californian Republican Governor Arnold Schwarzenegger lived up to his film role as ‘the Terminator’ by unilaterally sacking 22,000 state workers and cutting a further 200,000 workers’ wages to minimum wage levels. Employees affected immediately staged protests at their workplaces.

Schwarzenegger says cutbacks are needed to balance California’s budget deficit of over $15 billion. 30 US states, including California, face budget deficits, fundamentally resulting from the slowdown in America’s economy.

After political deadlock in the state assembly between Republicans and Democrats over the scale of the cuts, California’s financial controller - Democrat John Chiang - refused to implement the salary cuts, saying that it could risk legal action by workers.

Ford cut 350 jobs

The Ford motor company in Australia will sack 350 workers before the end of the year. This equates to 15 per cent of Ford’s manufacturing workforce in Australia. In addition to these sackings a further 600 jobs will go when Ford closes its Geelong engine plant in 2010.

Ian Jones, Secretary of the AMWU’s vehicle division called on the Federal Government to convene a national summit that gets the manufacturing industry and the policy-makers together. Jones believes this is the only way to address the recent spate of manufacturing job losses.

As far as Jones is concerned fighting against job cuts is off the agenda. In one interview Jones said “We’re not sure that we have all or any of the answers”. On this point we would have to agree!

More bank losses

Hot on the heels of failed former British private bank Northern Rock posting a £585 million ‘first half’ loss in 2008, the Royal Bank of Scotland - RBS, Britain’s second largest bank - announced a £691 million loss. RBS’s losses stem from being left holding unrecoverable debts after gambling in the US sub-prime loans market.

RBS had to write off some £5.9 billion in assets. No doubt, RBS chiefs, in order to protect fat cat shareholders, will try to recover these losses by screwing customers with higher charges.

Record oil profits

Fat cat US shareholders hope for bumper dividends after Exxon Mobil, the world’s biggest privately-owned oil company, announced a record second quarter (2008) income of $11.68 billion.

Meanwhile Europe’s largest oil company, Shell, saw its profits reach $11.56 billion, up from $8.67 billion last year. BP also reported a 28% increase in profits to $8 billion. These profits reflect the record prices consumers have to pay for their fuel and energy bills.

SP financial appeal

SP needs $20,000. Please read this important appeal and donate now!
http://www.socialistpartyaustralia.org/archives/1446

Help the SP election campaign in Yarra

All Victorian Councils will go to the polls on November 29. SP will be running a strong campaign in the City of Yarra. We will be defending Stephen Jolly’s seat in the Langridge ward and we will also be standing Denise Dudley in the Melba ward and Anthony Main in the Nichols ward.

We will need help letterboxing, staffing the pre polling booths and on election day. We also need to raise money to pay for the campaign. If you can help in any way contact our National Office on 0396399111. For more information about our work in Yarra visit.
http://www.socialistpartyaustralia.org/council

News links

South Africa: General Strike paralyses the country
http://www.socialistworld.net/eng/2008/08/27southa.html

Poland: Strikes continue against rocketing food and fuel costs
http://www.socialistworld.net/eng/2008/08/27polana.html

Britain: Nationalise the top food and fuel companies
http://www.socialistparty.org.uk/articles/6332

Join the Socialist Party

If you agree with what you have read in our newsletter or on our website you should consider joining SP. The Socialist Party has branches in Melbourne, Sydney, Newcastle and Perth as well as members and supporters in all other states.

We are involved in trade union work and student work. We also run community, anti-war and environmental campaigns. But most of all we want to build a party that will fight to get rid of the capitalist system, the system that is at the root of all of these problems. We fight for socialism - a system that will bring an end to wars, poverty and environmental destruction. To join SP contact our National Office on 03 9639 9111 and we will send you a membership application form.

Subscribe to ‘The Socialist’ newspaper!

Support the Socialist Party by subscribing to our monthly newspaper ‘The Socialist’. Subscription rates are only $10 per year or $20 solidarity price. You will receive 11 copies per year delivered to your door every month. You will also receive our email newsletter every week and you will know that you are supporting an organisation that is at the fore of fighting against the capitalist system. To subscribe to ‘The Socialist’ contact our National Office on 03 9639 9111 and we will send you a subscription form.

Socialist Party contact details

Melbourne: Phone Anthony on 0396399111.
Sydney: Phone Gary on 0297287727.
Newcastle: Phone Samantha on 0249681545.
Perth: Phone John on 0894020728.
Rest of Australia: Phone our National Office on 0396399111.
Rest of the world: Phone our International Office on ++ 44 20 8988 8760.

The Socialist Party is the Australian section of the Committee for a Workers’ International (CWI). The CWI is organised in over 40 countries across the world.

http://www.sp.org.au
http://www.socialistworld.net
http://www.myspace.com/socialistpartyaustralia
http://www.facebook.com/group.php?gid=20461960776